Wickland Company Installs a Manufacturing Machine in Its Production Facility

question 99

Multiple Choice

Wickland Company installs a manufacturing machine in its production facility at the beginning of the year at a cost of $87,000.The machine's useful life is estimated to be 5 years,or 400,000 units of product,with a $7,000 salvage value.During its second year,the machine produces 84,500 units of product.What journal entry would be needed to record the machines' second year depreciation under the units-of-production method?

• A)Debit Depletion Expense $16,900;credit Accumulated Depletion $16,900.
• B)Debit Depletion Expense $16,000;credit Accumulated Depletion $16,000.
• C)Debit Depreciation Expense $16,900;credit Accumulated Depreciation $16,900.
• D)Debit Depreciation Expense $16,000;credit Accumulated Depreciation $16,000.
• E)Debit Amortization Expense $16,900;credit Accumulated Amortization $16,900.

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Definitions:

Entertainment Tax

A tax imposed on services related to entertainment such as movies, events, and amusement parks, often collected to contribute to the public treasury.

Streaming Movies

The process of watching movies over the internet in real-time, without the need to download them, through services like Netflix, Hulu, or Amazon Prime.

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Physical or digital passes that allow an individual access to watch a movie at a cinema or theatre.

Streaming Movies

The process of watching films over the internet in real-time, without downloading them.